Usman Salis
NVIDIA continues to be one of the most watched stocks in today's AI-driven market. After experiencing volatile trading sessions, the chipmaker's shares are now testing a crucial support zone that could determine the stock's near-term direction and momentum.
Technical Analysis
Famous trader Ali's chart analysis reveals that NVIDIA's $166 level has emerged as a critical support zone.
The 4-hour price action shows the stock bouncing from this level after a sharp decline, which keeps the bullish scenario intact. The first resistance target sits around $174, with a stronger recovery potentially pushing the price toward $183. Currently, NVDA is range-bound between $166 and $183, indicating an ongoing battle between buyers and sellers.
This technical setup suggests that maintaining the $166 support level keeps buyers in control, while a breakdown below this threshold would likely shift momentum toward the bears and could trigger additional selling pressure.
Market Implications
NVIDIA has been central to the artificial intelligence revolution, benefiting from explosive demand for its GPUs in data centers and AI applications. Despite strong underlying fundamentals, the stock's elevated valuation has made it vulnerable to profit-taking and broader market volatility.
Successfully holding the $166 support could provide the foundation for NVDA to stabilize and potentially stage a relief rally. However, if this critical level fails, the stock risks entering a deeper correction phase that could test lower support levels and challenge the current bullish narrative surrounding AI-related investments.
Usman Salis
